SAP Standard Rebate Processing
Key Configurations
1. Activate Rebate Processing
Sales Organisation Level
IMG → Sales and Distribution → Billing → Rebate Processing → Active Rebate
Menu Path
Processing → Activate rebate processing for sales organizations
T Code OVB1
Billing Doc Level
IMG → Sales and Distribution → Billing → Rebate Processing → Active Rebate
Menu Path
Processing → Select billing documents for rebate processing
T Code OVB0
Payer Level
Setting up Rebate Agreement
IMG → Sales and Distribution → Billing → Rebate Processing → Rebate
Menu Path
Agreements → Define Agreement Types → Define Agreement Types
T Code VB(2
A. Copy from existing
(similar) Agreement
B. Condition Type
Group : Z002 To link
rebate condition
types with
Agreement
C. Manual Accrual
order Type : R4
(Sales Doc type to
post manual
accrual)
D. Partial Settlement :
R3 (Sales Doc type
to post partial
settlement, Credit
Memo request)
E. Final Settlement :
B1 (Sales Doc type to post Final settlement, Credit Memo request)
F. Correction : B2 (Sales Doc type to correct sales volume)
G. R4,R3,B1 & B2 sales docs should permitted in respective Sales Area
Create a Condition Type Group Z002
IMG → Sales and Distribution → Billing → Rebate Processing → Rebate
Menu Path
Agreements → Condition Type Groups → Define Condition Type Groups
T Code N/A
Assign Condition Type with Condition Type Group Z002
IMG → Sales and Distribution → Billing → Rebate Processing → Rebate
Menu Path Agreements → Condition Type Groups → Assign Condition Types/Tables To
Condition Type Groups
T Code N/A
Assigning only one condition type to condition type group but we can assign multiple condition types.
This Condition type group is assigned to Agreement Type, please note the condition type Z002 and table 1
which is to keep Customer and material condition records in rebate agreement.
Define Condition Type
IMG → Sales and Distribution → Billing → Rebate Processing → Rebate
Menu Path Agreements → Condition Technique For Rebate Processing → Define Condition
Types
T Code N/A
This condition type should be included in SD pricing procedure as rebate condition type. The condition
record to be maintained in rebate agreement.
Please also note the Access Sequence Z002 which is define as below
Define Access Sequence
Please note the rebate table 1 being assigned to access sequence
IMG → Sales and Distribution → Billing → Rebate Processing → Rebate
Menu Path Agreements → Condition Technique For Rebate Processing → Maintain Access
Sequences
T Code N/A
Maintain SD Pricing Procedure
IMG → Sales and Distribution → Basic Functions → Pricing → Pricing Control →
Menu Path
Define and Assign Pricing Procedures → Maintain Pricing Procedures
T Code N/A
In SD we are using BVAA01 pricing procedure (copy from Std). Add/replace rebate condition type Z002 in
pricing procedure with requirement 24 (for billing doc only)
Need to maintain below GL Account for Acct key ERB and ERU
Assign G/L Account
IMG → Sales and Distribution → Billing → Rebate Processing → Account
Determination For Rebates → Assign G/L accounts OR IMG → Sales and
Menu Path
Distribution → Basic Functions → Account Assignment/Costing → Revenue
Account Determination → Assign G/L accounts
T Code VKOA
Click on Table 1 and maintain below G/L for ERB and ERU Acct Key
Process Flow
Create Rebate Agreement
Create a new Rebate agreement type Z002 using Tcode VBO1
Maintain the condition record as below (for condition type Z002, attached to agreement type Z002 through
Condition group type Z002 assigned to agreement type)
We can maintain multiple condition records here should there are multiple condition types attached to
condition group type Z002
Save the agreement, agreement no. 92 created
Create OTC Cycle
Check the pricing of invoice line item, we can find the rebate amount under Z002 condition type, this
condition type is visible only in billing document due to requirement 24 in pricing condition.
Check the accounting for rebate account posting, accrual posted under 884010 and reserve posted under
89000 with same amount.
Check the accrual in Rebate Agreement
Use Tcode VBO3 to see the rebate agreement no. 92
click verification level icon and select scope=blank (all documents)
You can see your accrual line item along with other documents (created previously) falls under rebate
agreement scope (business volume).
Check the entry in Rebate table S060.
Go to SE16N and search for condition record for condition type Z002 in table KOTE001 (KOTE+table No)
Note the condition record No. 0000034045
Go to SE16N and search for condition record No. 0000034045 for in table S060
payments Accruals Reversed
Goto table S136 to check invoice wise condition types (accrual records)
Calculate Business Volume
Before settlement or to see the net accruals we need to calculate the Business Volume by executing VBOF.
Input Rebate Agreement No 92 and may first run with Test checkbox and once found no error may execute
with uncheck Test checknbox.
The result should appear something like below
Check the Sales Volume in Agreement
After VBOF execution Sales Volume should be calculated, Click on Sales Volume button to see the total
sales volume applicable to sale agreement.
Sales Volume is not shown at the bottom.
Partial Settlement
Goto VBO2 and open the agreement in change mode. Click on Pay button to input the partial settlement
amount.
Input 1000 as partial payment amount and save the data.
Credit Memo Request (of sale doc type R3) 60000108 has been created
Create Credit Memo of CM request
Goto VA02 and remove billing block of credit memo request and create order related Billing
Credit Memo No. 90036320 (Billing Document Type B3) has been created.
Goto condition tab of line item, we can see two condition , one for payment and one for accrual reversal
(statistical) of same amount.
Account posting
Rebate table S060 entry
Payment and reversal are same
Check Agreement for Partial Payment Document
Goto rebate documents in rebate payments menu.
We can see Partial settlement option is enables and Partial settlement document (Credit Note) can be seen
from here.
Create Manual Accrual
Goto VBO2 and open the agreement in change mode. Click on Accrue button to input the manual accrual
amount.
Input - 2000 (negative) as manual accrual amount and save the data.
Rebate request for manual accrual has been created. (Sale document of Type R4)
Goto VA02 to create order related billing as shown below
Goto accounting of billing document (manual accrual), can find manual accrual and reserve entry has been
done for Rs 2000 each
Check Agreement for Manual Accrual Document
Now the Manual Accrual rebate document is also enabled to be shown in rebate agreement.
Rebate table S060 entry
Now we can seeaccrual has been increase (2310.84+2000)=4310.84
Create Final Settlement
Goto VBO2 and change the agreement status to ‘B’ Released for Settlement and click on ‘create final
settlement’ button.
A final C redit Memo request has been created.
After saving the agreement we can see the Credit memo request no at bottom.
Goto VA02 and after removing the billing block, create the order related billing.
Accounting Document of Final Credit Memo
Check Agreement for Final Settlement Document
Now the Final settlement document is also enabled to be shown in rebate agreement.
Final Settlement Credit Memo
Account Posting of Final Settlement
Rebate table S060 entry
Now we can see total accrual amount has been reversed and payment of amount 2310.84 has been done
in two parts, Partial paymenyt of 1000 and Final settlement of 1310.84, total 2310.84 to customer which
same as Sale volume calculated using VBOF.
Total accruals , initial 2310.84 + manual accrual 2000 = 4310.84 has also been reversed.
The End
